Looking forward to next year, if Digby’s current cash balance is $17,334 (000) and cash flows from operations next period are unchanged from this period, and Digby takes ONLY the following actions relating to cash flows from investing and financing activities: Issues 100 (000) shares of stock at the current stock price Issues $400 (000) in bonds Retires $10,000 (000) in debt
Which of the following activities will expose Digby to the most risk of needing an emergency loan?
Save Answer Pays a $5.00 per share dividend
Liquidates the entire inventory
Sells $10,000 (000) of their long-term assets
Purchases assets at a cost of $25,000 (000)